STT in Finland may cease operations due to restructuring — YLE News
Finnish news agency STT has announced extensive restructuring that could potentially lead to the cessation of its operations after nearly 140 years in business. Negotiations with staff representatives as part of the restructuring involve 95 employees — almost the agency’s entire workforce, YLE News reports.
Losses in news and photo divisions
STT explained the decision by prolonged losses in its news and photojournalism divisions. Of the 95 employees covered by the negotiations, around 68 work in news and photography, while the rest work in other parts of the business.
The agency provides news and photo services to dozens of Finnish media outlets, including Yle, which owns a 1.7% stake in STT. The agency was founded in 1887 and is among the world’s oldest news agencies still in operation.
STT CEO Kimmo Laaksonen said that previous targets for adjusting operations had effectively not been achieved: the agency’s costs continue to exceed its revenue. According to him, operating on a smaller scale than at present would not make it possible to provide clients with an adequate level of service.
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Reaction from the union and government
The Union of Journalists in Finland called the possible closure of STT shocking news. Its chair, Marjaana Varmavuori, urged the state above all to take measures to preserve the agency’s operations and noted that, in the worst-case scenario, its collapse could trigger a chain effect for other media outlets.
Finland’s Ministry of Transport and Communications said it is suspending preparations for providing state funding to STT until further notice. The government of Prime Minister Petteri Orpo had previously stated its intention to support the continuity of the agency’s operations with a subsidy of more than €1 million.
Minister of Transport and Communications Lulu Ranne noted that STT’s financial and operational difficulties have been known for a long time, so the restructuring announcement did not come as a surprise. In 2018, Finland’s government had already approved a €1.5 million subsidy for the agency due to the gradual loss of clients.
